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What should you do if you have never had a loan but your credit report lists a collection marked 'Type of Loan - Factoring Company Account' and what is this?
Wiki User
∙ 16y ago
Factoring Companies buy account receivables from businesses. This is an alternate way for businessess to access cash, by selling their inventory, without having to take out a short term loan. The use of this term is a misnomer in the credit industry. Collection agencies have adopted this term to avoid the legal implication of being a collection agency or "junk debt buyer". The vital difference between a true factoring company and a junk debt buyer is whether the subject accounts were in default at the time they were puchased. For your purposes, this is a collection account. It is a derogatory listing on your credit report. You need to write the collection agency and request verification of this debt.
Addendum: You will want to send them a request for debt validation, not verification (requesting verification will most likely result in them sending you another dunning letter) send the letter to them USPS certified mail, return receipt requested. Here is a link for a good validation letter template: https://www.debtconsolidationcare.com/letters/sample6.html
Wiki User
∙ 16y ago
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How does credit card factoring work?
credit card factoring is a form of cash advance between small business and the credit card companies to provide cash flow for the small business as they wait for the card purchase to clear the credit card company.
What does credit factoring mean?
Credit Factoring is where a business sells its invoices to a third party at a discount. In credit factoring, the third party buying the invoices is called the factor.
How do you raise your credit score after paying a collection company?
No
How can you mend your credit after a paid collection?
Only the credit bureaus the collection agency can remove a collection from your credit report. The collection agency won't do it now since it is paid and they have no reason to. You can dispute it to the credit bureaus and ask for verification on the account. They will have 30 days to verify the items or it must be removed from your credit report.
What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?
Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.
What does it mean when your credit report states that you have a paid closed collection account on you credit report?
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
Where do you pay collection accounts that are reported on your credit report when the company is out of business or no longer handles the account that was reported for collection?
You pay the collection agency.
If you stop paying on a collection account that no longer shows on your credit report can the collection company report the unpaid balance to the credit bureaus?
Yes they can and they probably will. if you are concerned about your credit profile, it would not be a good idea to stop paying.
Can unpaid co-payments for Hospital bills hurt your credit report?
Yep! If the ambulance company turns your account over to a collection agency that agency might report the collection on your credit. Medical collections are the most common type of collection on a credit report.
What are benevfits of factoring the accounts receivable for a company?
The key to many of the benefits that accompany factoring is the distinction between selling an asset and obtaining credit. By factoring a company's accounts receivable, a company can avoid extending Invoice Terms to questionable customers.
How do collection accounts affect your credit score?
== == Collection account are 20% of the total credit score module.
Can a sold credit card account be collected on if the account is reported as charged off with a zero balance?
It may be zeroed out w/ the orig company because they sold it to the collection people. DO NOT PAY COLLECTION AGENCIES ANYTHING!! google "fair credit act". lots of info
A debit or credit memo describing entries in the company's bank account may be enclosed with the bank statement An example of a credit memo is?
a promissory note left for collection
How does credit card factoring work?
credit card factoring is a form of cash advance between small business and the credit card companies to provide cash flow for the small business as they wait for the card purchase to clear the credit card company.
Can a collection agency continue to report a collection account to the credit bureau after the account is sold to another collection agency?
No, once a collection agency relinquishes their claim to the account by selling it they must remove all negative trade lines related to that account from your credit reports. Hope this helps ST
What are some pros of receivables factoring?
There are many advantages when factoring account receivables. Some of these include receiving cash quicker. As well, credit checks are not required by factoring receivables through a financial institution either.
What If There Is A Bankruptcy Or Bad Credit In My Companys Or My History?
Normally this is no problem. The invoice factoring company focuses on the credit-worthiness of your clients, not to your credit score. If you have good customers, invoice factoring firm can offer capital based on their credit-worthiness rather than yours.
